AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- BHP Group (BHP) shares have declined 4.8% since 2025 began.
- Strong dividend history but recent payouts have softened.
- Growing demand in resources sector fuels long-term optimism.
BHP Group (ASX:BHP), one of Australia's resource giants, has seen its share price slide 4.8% since the beginning of 2025. Despite this dip, BHP remains an important player in the commodities space, offering a mix of traditional strength and future-facing potential.
Founded in 1885, BHP is known for its diversified natural resource operations across copper, iron ore, and coal. These sectors form the backbone of its revenues, although recent efforts also point toward strategic expansion into emerging areas like fertilisers.
BHP has historically been a cornerstone of many Australian portfolios, partly due to its status as a reliable dividend payer. As one of the largest companies listed on the ASX, BHP often finds its way into broader investment vehicles like ETFs, LICs, and even superannuation funds. Therefore, many Australians likely have indirect exposure to BHP without even actively choosing it.
The broader materials sector, tracked by the S&P/ASX 200 Materials Index (ASX:XMJ), has posted a 6.48% annual growth over the past five years. Although this lags behind the 8.33% annual return of the ASX 200 Index, the sector’s allure remains, particularly because of its strong dividend history.
BHP’s average dividend yield of 6.86% over the past five years showcases its strength in delivering shareholder returns. However, the yield currently sits around 5.75%, reflecting a combination of lower dividend payouts and changes in the share price. It’s important to note that while the company maintains a solid reputation for distributions, these earnings can vary significantly given the cyclical nature of commodity markets.
Looking ahead, BHP stands in a compelling position as global demand surges for key minerals like copper and lithium, vital for renewable energy technologies such as electric vehicles and solar infrastructure. Major miners like BHP and Rio Tinto (ASX:RIO) are investing heavily to align with this emerging growth story.
While current dividends have softened compared to recent years, the strategic shifts towards future-facing commodities suggest BHP is not just anchored in its historical strengths but also geared towards the evolving needs of a changing global economy.
